Jakarta, August 25 2010 - Today in the auditorium of the Investment Coordinating Board (BKPM), the South Sumatra Provincial Government, represented by Governor H. Alex Noerdin, PT Adani Global, and PT Bukit Asam Tbk signed a Head of Agreement (HoA) for construction of coal transportation railway line of along 270 km from Tanjung Enim to Tanjut Carat (Tanjung Api-api and the construction of Coal Terminal in Tanjung Api-api. The Minister of Communications, Minister of Industry, as well as the BKPM Chairman were also attended in this signing.

South Sumatra is one of 7 (seven) regional provincial champions are announced by the Investment Coordinating Board earlier this year, for the purpose to help Local Governments which are ready to accelerate investment in their respective regions. Through this program, BKPM provides training, exposure to forums and international media and facilitate intensive with prospective investors, including also helps packaging projects offered.

"The signing is one form of government and private partnership in building infrastructure in the region. I am very happy because one of the provincial regional champions succeeded in realizing railway construction plan that has been long overdue," said Gita Wirjawan, BKPM Chairman.

As we know, has just recently signed MoU of Public Private Partnership (PPP) acceleration program between the Investment Coordinating Board and Bappenas and the Ministry of Finance with the main objective to simplify the investment process for prospective investors, especially in the field of infrastructure.

"The investment plan in this project amounted to U.S. $ 1.6 billion with coal terminal capacity of 50 million tons per year, which the PT Bukit Asam would supply of 34 million tons. The investment is very important to encourage economic growth in South Sumatra" explained Alex Noerdin, Governor of South Sumatra.

In addition to the railway project and coal terminal, in the future development of the Tanjung Api-api project would also include the construction of the Tanjung Api-api Port and Industrial Area. Investment for the Port estimated of Rp. 8 trillion and for the construction of Industrial Area of Tanjung Api-api is Rp.54, 271 trillion.

Construction of the railway and coal terminal and the development of Tanjung Api-api area as a whole, is expected to increase economic growth in South Sumatra. It is estimated that the development project of this area will be open around 100,000 jobs.

Construction of the railway and the coal terminal is also encouraging immediately realization of an aluminum smelter in cooperation with South Sumatra provincial government and National Aluminium Company Ltd (Nalco), India's state-owned aluminum. Aluminum smelter is a mega project worth US$ 3,2 billion and the design capacity of up to 500,000 tons. Although the memorandum of understanding (MoU) of this project was signed since 2008, but realization of this project is still blocked the certainty of supply of coal issues.

"With the railway and the coal terminal, it is hoped construction of the aluminum smelter with Nalco that was delayed for two years can be immediately realized," said Gita.

Format of Head of Agreement (HoA), which was chosen in this agreement does not reduce the seriousness of both parties. HoA sets out the rights and obligations of each party and is the first step of the overall labor contract as the MoU.

In his explanation BKPM Chairman convey, "The existence of adequate infrastructure will stimulate the entry of long-term investment and value added. Smart Capital Investments like these types needed by Indonesia. "